The Nasdaq and S&P 500 closed lower after the Fed cut interest rates by 25 basis points. The Dow closed higher after Powell’s speech. The central bank plans two more rate cuts this year due to concerns about the weak labor market. Powell noted inflation risks must be managed.

Financial stocks boosted the Dow, but Nvidia’s shares fell 2.6% due to China’s ban on buying its chips. Workday rose 7.2% after Elliott Management invested $2 billion. Lyft surged 13.1% on news of Waymo’s autonomous cab rides in Nashville. Uber shares dropped 5%.

The S&P 500 hit 18 new highs while the Nasdaq recorded 122 new highs. U.S. exchange volume was 18.91 billion shares. The Fed’s rate cuts will test Wall Street’s recent rally, supported by AI-linked trading. Powell addressed concerns about Fed independence from the executive branch. President Trump’s attempt to sack a Fed Governor was rejected.

Read more at Yahoo Finance: Wall Street ends mixed, trade choppy after Fed’s rate cut, outlook